19/11/2013

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:00:00. > :00:00.of his remaining powers. He admitted to smoking crack cocaine and paying

:00:00. > :00:21.for illegal drugs. For the latest financial news, it is

:00:22. > :00:24.World Business Report. Moving in with Microsoft. Nokia

:00:25. > :00:29.shareholders vote on whether the land's biggest company will go into

:00:30. > :00:34.American hands. `` Finland's. European politicians prepared to

:00:35. > :00:46.vote on a new EU budget. It could be passed in Strasbourg.

:00:47. > :00:49.Welcome to World Business Report. Also in the programme: We take a

:00:50. > :00:52.look at how Asian markets are reacting after new record highs were

:00:53. > :00:57.hit during the trading session on Wall Street. Burst of all, Nokia

:00:58. > :01:02.shareholders will vote today on whether to sell the mobile phone

:01:03. > :01:07.business to Microsoft. The meeting is expected to approve the $7.2

:01:08. > :01:13.billion sale, but the outgoing chief executive, Stephen Elop, has sparked

:01:14. > :01:17.a bit of controversy. He is walking away with a $25 million payoff,

:01:18. > :01:22.despite having persuaded over a sharp fall in the kind `` company's

:01:23. > :01:28.value and the loss of its position as the world's biggest mobile phone

:01:29. > :01:32.maker. All of its patents and mapping services will be sold to

:01:33. > :01:36.Microsoft. How do the shareholders feel about the boat? How do the

:01:37. > :01:40.Finnish people feel that the country's biggest brand is now being

:01:41. > :01:46.swallowed up by corporate America? We are joined on the line by Timo

:01:47. > :01:51.Loyttyniemi, who is director of the Finnish state pension fund. It is

:01:52. > :02:00.the third biggest Finnish institutional investor in Nokia.

:02:01. > :02:04.Tell us how you will vote today. We will be present at the extraordinary

:02:05. > :02:13.meeting today. We will vote in favour of the transaction. We have

:02:14. > :02:17.analysed the transaction and looked at the material and discussed with

:02:18. > :02:24.various market analysts. The share price has risen nicely since early

:02:25. > :02:31.September. We are in favour of the transaction. So you will be voting

:02:32. > :02:37.yes. It is a significant and very symbolic change for Nokia. Are you

:02:38. > :02:40.quite sad about the developments of this company, which was once upon a

:02:41. > :02:48.time the biggest mobile phone maker in the world? There have been a lot

:02:49. > :02:55.of changes in the industry. The mobile phone industry has existed

:02:56. > :03:03.only for 20 years. There has been a lot of dynamic change in the

:03:04. > :03:06.industry. Things go up and down. Your feelings about Stephen Elop as

:03:07. > :03:09.chief executive. Many are saying that perhaps he should not be

:03:10. > :03:16.getting the deal that he is getting as he leaves Nokia. I would not

:03:17. > :03:21.comment on any particular individual part of the deal. We are just dating

:03:22. > :03:30.that we are in favour of the total deal. `` stating. In terms of the

:03:31. > :03:35.future for Nokia, it is going to be a very, very different company. Are

:03:36. > :03:38.you confident it will return some of the shareholder value that you saw

:03:39. > :03:44.in the past, and we stick with it in the long`term? The share price has

:03:45. > :03:50.ready doubled since September. It is nearly four times higher now than

:03:51. > :03:55.1.5 years ago. So the development is in the right direction. We are

:03:56. > :04:00.waiting for the company to announce a new strategy after the completion

:04:01. > :04:08.of this transaction. It will be in the first quarter of next year. Timo

:04:09. > :04:17.Loyttyniemi, thank you for joining me.

:04:18. > :04:22.When we get a result on the boat, we will let you know. European

:04:23. > :04:26.Parliament will also be voting for final approval of the EU budget for

:04:27. > :04:30.the next seven years. It will start from next year. It has been the

:04:31. > :04:34.subject of months of debate between the European leaders and members of

:04:35. > :04:45.the European Parliament, who have been given greater powers since the

:04:46. > :04:49.Lisbon Treaty was signed in 2009. Another EU budget vote, that old

:04:50. > :04:53.chestnut. But in Strasbourg, with winter touring in, a series of Marys

:04:54. > :05:00.on budget dispute should be about to end. `` marathon. The EU's financial

:05:01. > :05:05.framework for the next seven years is about to get final parliamentary

:05:06. > :05:11.approval. So where is the money going to go? One third of the budget

:05:12. > :05:15.is dedicated to spending on development in the EU's poorest

:05:16. > :05:19.regions. Slightly less will be spent on agriculture. It used to be the

:05:20. > :05:24.biggest budget item by far, the critics want it to be cut further.

:05:25. > :05:27.Measures to increase competitiveness, take up a much

:05:28. > :05:34.smaller smite `` slice of the budget. Administration costs account

:05:35. > :05:38.for only 6% of the total. Those are the same numbers that were agreed

:05:39. > :05:43.nine months ago by EU leaders at a fractious summit in Brussels. That

:05:44. > :05:47.means that David Cameron and his allies can still say that the

:05:48. > :05:53.overall limit on EU spending has gone down in real terms for the

:05:54. > :05:56.first time ever. But in the corridors of the European

:05:57. > :06:02.Parliament, they were not happy with the original outcome, and they now

:06:03. > :06:08.have added powers. There is a catch. In the seven years just ended, tens

:06:09. > :06:13.of billions of euros of budget money has not actually been spent. It has

:06:14. > :06:17.been sent back to national coffers. Many MEPs are determined to change

:06:18. > :06:21.that. They have negotiated more flicks ability to move money from

:06:22. > :06:26.one year to another, or from one possibly area to another to keep it

:06:27. > :06:32.in Europe. `` policy area. So spending over the next seven years

:06:33. > :06:37.could actually rise. For the majority in the Parliament, the case

:06:38. > :06:41.is compelling. The EU budget is only 1% of gross national product and

:06:42. > :06:45.there is a lot to do, but critics insist that in difficult days, it

:06:46. > :06:53.must be smaller. Arguments about money will run and run.

:06:54. > :06:59.The company that makes Jammie Dodgers has been sold for $556

:07:00. > :07:06.million to a Canadian pension fund. They also make the much loved wagon

:07:07. > :07:11.wheel. It will be owned by on curry of teachers pension plan. They have

:07:12. > :07:19.four manufacturing bases in the UK. `` Ontario.

:07:20. > :07:24.MF global has been ordered to pay $1.2 billion in restitution to its

:07:25. > :07:28.customers over its collapse. 1.6 billion of client money went missing

:07:29. > :07:37.before the firm filed for bankruptcy protection. The commission is also

:07:38. > :07:41.suing the former head of the firm. Two senior executives of the Swedish

:07:42. > :07:45.furniture retailer IKEA have been arrested in France as part of an

:07:46. > :07:48.investigation into allegations the company used illegal surveillance

:07:49. > :07:53.methods to spy on staff and customers. The Chief Executive

:07:54. > :07:56.Officer of Ikea France and is chief financial officer have been

:07:57. > :08:01.questioned by police in Versailles, to Paris.

:08:02. > :08:06.Its coin, the world's biggest cyber currency, hit a record high. It came

:08:07. > :08:09.as a US Senate committee hearing discussed the legitimacy of the

:08:10. > :08:14.virtual currency and how regulation can be developed to manage the space

:08:15. > :08:19.and avoid it being used for money laundering and drug trafficking. The

:08:20. > :08:28.currency has gained 4700% in the last year.

:08:29. > :08:32.Talking of things going up, the US market hit another record during the

:08:33. > :08:38.trading session. It was all happening on Wall Street. How are

:08:39. > :08:43.things going in Asia? Not quite as well, as you can imagine. Despite

:08:44. > :08:47.the gains on Wall Street, we are seeing Asian shares slipping back

:08:48. > :08:52.from two weak eyes, mainly due to profit`taking after the games

:08:53. > :09:01.previously made. That was mainly on China's and on a reform plans. ``

:09:02. > :09:06.economic. It is part of the biggest reform package since the 1990s. They

:09:07. > :09:10.asked to having a big impact here. Boosting a lot of speculation that

:09:11. > :09:17.China will achieve more sustainable growth. We saw markets doing

:09:18. > :09:22.particularly well yesterday. Chinese stocks were up 3%. But they are

:09:23. > :09:26.taking a bit of a breather now. Hong Kong stocks are up. They are

:09:27. > :09:30.extending the gains they made on Monday. Hong Kong is where many

:09:31. > :09:34.Chinese shares are listed. We are seeing the likes of China life

:09:35. > :09:39.insurance, the nation's biggest insurer, they are rising. It is one

:09:40. > :09:45.of the companies that could benefit as a result of the new reforms. We

:09:46. > :09:52.also saw big gains for baby related products companies. It was due to

:09:53. > :09:59.the relaxing of the one child policy. But they have succumbed to a

:10:00. > :10:06.bit of profit`taking today. The Japanese stock`market has failed.

:10:07. > :10:12.The stronger yen puts a dent in the export earnings.

:10:13. > :10:16.That is all from World Business Report. We will talk you through the

:10:17. > :10:18.papers in a moment, including more on the market high in the